Spain May Not Be Uganda, But Will America Soon Be Argentina?
Submitted by Tyler Durden on 07/06/2012 14:49 -0400
- The last few days have seen some rather concerning central-planning actions by Argentina. Fresh from their nationalization of Spain’s YPF, not only did they “forbid individuals from buying dollars for savings” issuing a statement allowing dollars to be used for “travel, mortgages, and to send family members traveling abroad if they they run out of money”; but now we hear of the forced action on Argentina’s banks to lend out 5% of deposits at rates well below inflation estimates in the next six months (or else). As Reuters notes, “The move… marks an escalation in [President Christina Fernandez] war on private enterprise which may spread further.” It should be noted just how far central banks are willing to go ….